India Base Metals: Most down on risk-off sentiment, firm dollar

Informist, Friday, Mar 24, 2023

By Sandeep Sinha

MUMBAI – Most base metal futures fell on the Multi Commodity Exchange of India and the London Metal Exchange because of increased risk aversion, weakness in equity markets, and a rebound in the dollar. A firm greenback makes dollar-denominated industrial metals more expensive for other currency holders.

Investors will take further cues from the US March manufacturing and services purchasing managers’ index and February core durable goods order data, to be released later in the day.

However, the downside in base metals was limited as LME stocks of aluminium fell by 6,225 tn to 532,725 tn, while those of copper were down by 800 tn to 72,675 tn, lead fell by 25 tn to 25,700 tn, and zinc dropped 50 tn to 39,650 tn.

ALUMINIUM prices were steady as it erased the day’s gains as traders unwound long positions on the domestic exchange.

COPPER prices declined due to a firm dollar and as market players rolled over their short positions on the MCX. The world’s refined copper market surplus widened to 103,000 tn in January from 12,000 tn in the same period last year, the International Copper Study Group said in its latest monthly bulletin.

LEAD contracts fell due to profit-booking by traders on the domestic bourse.  

ZINC prices fell due to concerns about demand in China and traders liquidating their long positions on the domestic exchange.

* At 1705 IST, on the MCX, the February futures contract of:

 –Aluminium was at 203.85 rupees a kg, unchanged 

 –Copper was at 782.40 rupees a kg, down 0.1% 

 –Lead was at 180.60 rupees a kg, down 0.3%

 –Zinc was at 254.20 rupees a kg, down 0.7%

* Outlook for the evening session on the MCX:

 –Aluminium contract seen at 201.0-206.50 rupees a kg

 –Copper seen at 774.0-788.0 rupees a kg

 –Lead seen at 177.0-182.50 rupees a kg

 –Zinc seen at 250.50–256.0 rupees a kg

End

US$1 = 82.48 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Aditya Sakorkar

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